Global airlines will cut losses 78% to $ 12 billion next year, IATA reports

The plane lands on the southern runway of London Heathrow Airport. US and EU travelers who are fully vaccinated against the coronavirus will be allowed to enter England and Scotland without quarantine from Monday.

Steve Parsons | PA images | Getty Images

The global aviation industry is expected to lose about $ 12 billion next year, cutting its losses by 78% from this year as carriers slowly recover from the Covid-19 pandemic, the International Air Transport Association said in its forecast on Monday.

IATA, representing nearly 300 airlines that account for more than 80% of global air traffic, said industry losses in 2021 would be worse than initially estimated at $ 51.8 billion, up from $ 47.7 billion in April. …

Net losses in 2020 were $ 137.7 billion, higher than IATA’s estimate of $ 126.4 billion earlier this year, bringing the industry’s total net loss from the pandemic to over $ 200 billion.

“We have passed the deepest point of the crisis,” said IATA CEO Willie Walsh during the group’s annual meeting in Boston. This was the group’s first in-person annual meeting since June 2019. “Although serious problems remain, the road to recovery is visible.

IATA predicts the industry will return to profitability in 2023 and said total passenger numbers will grow to 3.4 billion next year from 2.3 billion this year.

Walsh said lifting restrictions on international travel related to the pandemic would lead to an increase in bookings, but denounced the lack of country-wide guidelines on safety protocols such as Covid testing windows, age benefits and vaccination screening methods.

Last month, the Biden administration said in November that it would lift bans on foreign visitors that were introduced at the start of the pandemic, but officials have yet to set a date.

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